DaVita Inc. (DVA): Among Small-Cap Healthcare Stocks Hedge Funds Are Buying

Ali Hassan

Wed, May 14, 2025, 4:53 AM 6 min read

We precocious published a database of 15 Small-Cap Healthcare Stocks Hedge Funds Are Buying. In this article, we are going to instrumentality a look astatine wherever DaVita Inc. (NYSE:DVA) stands against different small-cap healthcare stocks hedge funds are buying.

The U.S. healthcare assemblage has performed amended successful 2025 compared to the broader market. After 2 years of anemic performance, the healthcare assemblage kicked disconnected connected a beardown enactment successful 2025. In a missive from Federated Hermes, wrong the S&P 500, the healthcare assemblage soared astir 2.59% arsenic of April 30. Whereas the Information Technology assemblage reported an 11.24% loss, the Consumer Discretionary assemblage was down 14.08%, and the S&P 500 recorded a 4.92% diminution arsenic a whole.

READ ALSO: Why These 15 Healthcare Stocks Are Surging successful 2025

As ostentation eases, things volition beryllium amended economically for the healthcare sector. The Investment Director of Federated Hermes, Jordan Stuart, mentioned that erstwhile ostentation has eased historically, healthcare stocks person performed better. Stuart added:

“Typically, healthcare stocks underperform erstwhile ostentation is precocious owed to accrued costs and pricing pressures. However, ostentation has, ever truthful slowly, begun to diminution again, and optimism astir complaint cuts has resurfaced, giving beingness backmost to healthcare stocks. This displacement successful economical conditions volition apt heighten the attractiveness of wellness attraction investments, arsenic little ostentation and involvement rates make a much favourable situation for maturation and profitability.”

According to BlackRock, an mean of 75% of healthcare companies exceeded net expectations successful the archetypal 3 quarters of 2024. This led to an improved section capitalist sentiment, with astir $80 cardinal of inflows to the iShares Global Healthcare ETF (IXJ) successful 2024. BlackRock expects the 2025 projected net successful the healthcare assemblage to rebound adjacent further, signaling the highest year-over-year maturation successful 18 years, excluding the COVID-19 period.

The U.S. healthcare assemblage present accounts for a 5th of the U.S. economy. With integer transformation, non-acute attraction shifts, and innovation successful biosimilars and speciality drugs, the healthcare assemblage remains poised for maturation successful 2025. According to SNS Insider Research, the healthcare marketplace is expected to scope $44.76 trillion successful 2032 from $21.22 trillion reported successful 2023. This marks a CAGR of 9.07% betwixt 2024 and 2032. North America accounts for astir 44% of the planetary healthcare marketplace share.

Trump’s tariffs stay a large hurdle for healthcare, and they whitethorn endanger astir a 10-15% outgo summation for drugs and aesculapian devices, arsenic per Forbes. According to the Medical Device Network, astir 69% of the U.S.-marketed aesculapian devices are manufactured extracurricular of the U.S.